Supreme Court Modifies Compensation Rate in Land Acquisition Case

In a recent judgment delivered on April 10, 2023, the Supreme Court of India modified the compensation rate awarded in a land acquisition case. The case involved the acquisition of lands for the establishment of an IT Park in Kozhikode.

The High Court of Kerala had previously determined the compensation at Rs. 1,35,000/- per cent, considering the negotiated price of Rs. 1,00,000/- per cent and granting a further 35% rise. However, the appellants challenged this decision, arguing that the lands in question were garden lands with road access, situated in a prime location near the IT Park.

The appellants also relied on a sale exemplar indicating a higher price for nearby land. The High Court had dismissed this evidence, stating that the sale exemplar pertained to commercial property and was therefore not relevant.

After considering the arguments, the Supreme Court upheld the High Court's decision to consider the negotiated price as a relevant factor in determining the compensation. However, the Court found that granting a 35% rise to the negotiated price was on the lower side, considering the location of the lands.

Therefore, the Supreme Court modified the compensation rate to Rs. 1,60,000/- per cent, providing a fair and just compensation to the landowners. The acquiring body was directed to deposit the enhanced compensation amount with the Reference Court, and the original claimants were entitled to statutory benefits and interest.

DATE OF DECISION: April 10, 2023

Rajalakshmi vs The Special Tahsildar (LA) Koyilandy & Another

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